Overall, good progress has been made in response to the FSAP recommendations to enhance
the microprudential supervisory framework for banks and insurers, including by
incorporating some of the latest regulatory developments and international guidance. In
particular, the stress testing framework and coverage for banks and insurance companies has
been enhanced, the regulatory reporting framework for both sectors has improved, and the
intensity of on-site supervision for larger banks has increased.
Regulatory initiatives at both
global and European level have shaped the direction and pace of German reforms in this area.